MIRA INFORM REPORT

Report Date :

05.12.2012

IDENTIFICATION DETAILS

Name :	ARABIA COMMERCIAL AGENCY CO LTD (ARCOMA)
Registered Office :	Al Nanaiah Commercial Centre, 1^st Floor, Office No. 7/9-18, Madinah Road, Baghdadiyah District, P O Box 811, Jeddah 21421
Country :	Saudi Arabia
Financials (as on) :	31.12.2011
Year of Establishment :	1955
Com. Reg. No.:	4030083930, Jeddah
Legal Form :	Limited Liability Partnership
Line of Business :	Subject operates through several divisions:- l Food Division l Storage Systems Division l Technical Division l Packaging Division l Material Handling Divisio
No. of Employees :	450 employees

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Saudi Arabia	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Saudi Arabia - ECONOMIC OVERVIEW

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about one-fifth of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Diversification efforts are focusing on power generation, telecommunications, natural gas exploration, and petrochemical sectors. Almost 6 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors, while Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population, which generally lacks the education and technical skills the private sector needs. Riyadh has substantially boosted spending on job training and education, most recently with the opening of the King Abdallah University of Science and Technology - Saudi Arabia''s first co-educational university. As part of its effort to attract foreign investment, Saudi Arabia acceded to the WTO in December 2005 after many years of negotiations. The government has begun establishing six "economic cities" in different regions of the country to promote foreign investment and plans to spend $373 billion between 2010 and 2014 on social development and infrastructure projects to advance Saudi Arabia''s economic development.

Source : CIA

SUMMARY

Company Name : ARABIA COMMERCIAL AGENCY CO LTD (ARCOMA)

Country of Origin : Saudi Arabia

Legal Form : Limited Liability Partnership

Start Date : 1955

Registration Date : 1992

Commercial Registration Number : 4030083930, Jeddah

Chamber Membership Number : 40393

Issued Capital : SR 10,000,000

Paid up Capital : SR 10,000,000

Total Workforce : 450

Activities : Subject operates several divisions (see below for details)

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Abdullah Murfiq, Human Resources Manager

COMPANY NAME

ARABIA COMMERCIAL AGENCY CO LTD (ARCOMA)

company ADDRESS

Registered & Physical Address

Building : Al Nanaiah Commercial Centre, 1^st Floor, Office No. 7/9-18

Street : Madinah Road

Area : Baghdadiyah District

PO Box : 811

Town : Jeddah 21421

Country : Saudi Arabia

Telephone : (966-2) 6444212

Facsimile : (966-2) 6448989

Email : info@arcoma.com

Premises

Subject operates from a large suite of offices covering an area of 1,000 square metres that are rented and located in the Central Business Area of Jeddah.

Branch Office (s)

Location Description

· Arcoma Building Owned showroom & warehouse

Salah Al Deen Street

PO Box: 408

Riyadh 11411

Tel: (966-1) 4771433 / 4772865

Fax: (966-1) 4774847

· Ibn Khaldoun Street Rented showroom & warehouse

PO Box: 2341

Dammam 31451

Tel: (966-3) 8271104 / 8271701

Fax: (966-3) 8262305

· Al Seih Street Rented showroom & warehouse

Madinah

Tel: (966-4) 8231733

Fax: (966-4) 8236988

· Othman Bin Affan Street Rented showroom & warehouse

PO Box: 686

Yanbu

Tel: (966-4) 3225624

Fax: (966-4) 3225486

· Khamis Mushait Rented showroom & warehouse

Tel: (966-7) 2205138

Fax: (966-7) 2205048

· Al Setten Street Rented showroom & warehouse

Al Faiziyah District

Buraidah

Qassim

Tel: (966-6) 3841512

Fax: (966-6) 3841512

KEY PRINCIPALS

Name Position

· Omar Abdul Qader Bajammal Managing Partner

· Salim Abdul Qader Bajammal Partner

· Mohamed Omar Bajammal General Manager

· Hosam G. Al Mashoor Manager – Food Division

· Mohamed Akbar Manager – Packaging Division

· Abdullah Murfiq Human Resources Manager

· Moosa Jadid Finance Manager

LEGAL FORM & OWNERS

Date of Establishment : Subject’s operations date back to 1955, however it was registered in 1992

Legal Form : Limited Liability Partnership

Commercial Reg. No. : 4030083930, Jeddah

Chamber Member No. : 40393

Issued Capital : SR 10,000,000

Paid up Capital : SR 10,000,000

Name of Partner (s)

· Omar Abdul Qader Bajammal

· Salim Abdul Qader Bajammal

AFFILIATED COMPANIES

· Universal Shelves Industries Co Ltd (USICO)

Street No. 311

Jeddah Industrial City, Phase III

PO Box: 10950

Jeddah 21443

Tel: (966-2) 6374483

Fax: (966-2) 6364611

· National Factory for Polystyrene Packs Co Ltd

Jeddah Industrial Estate, Phase 1

PO Box: 5398

Jeddah 21422

Tel: (966-2) 6374387

Fax: (962-6) 6378964

Email: styrene@styrenpack.com

OPERATIONS

Activities: Subject’s activities are performed through the following divisions:

· Food Division

Importers and distributors of general foodstuff products, including rapeseed oil and vegetable oils, as well as dairy products, frozen and chilled foodstuff.

· Storage Systems Division

This division is engaged in the distribution of storage solutions and racking for industrial and laboratory uses.

· Technical Division

This division offers a wide range of products and services in industrial automation and control, as well as pneumatic parts designed for compressed air equipment.

The Technical Division also offers design, supply and implementation of automation projects for manufacturing units to ensure optimum production capacities; as well as solve technical problems relating to control technology.

· Packaging Division

Distributors of packaging systems and consumables, including strapping machines, shrink packaging systems, carton sealers, fillers, vacuum packaging systems, conveyor machinery and metal clips.

· Material Handling Division

Exclusive distributors in Saudi Arabia for Crown forklift trucks and related spare parts.

Import Countries: The United Kingdom, Belgium, the Netherlands, Spain, Germany and the United States of

America.

International Suppliers:

· Textron Fastening System Ltd United Kingdom

· John L Seaton & Co Ltd United Kingdom

· Beko Technologies GmbH Germany

· Crown Equipment Corporation United States of America

Brand Names: BONNY, KLIM, ZERAEI, NABTAH, STRAPEX, ULMA, ROCHMAN and UNIPACK

Operating Trend: Steady

Subject has a workforce of approximately 450 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Saudi Riyals (SR)

Year Ending 31/12/10 Year Ending 31/12/11:

Total Sales SR 157,000,000 SR 163,000,000

Local sources consider subject’s financial condition to be Fair.

The above financial figures are based on estimations by our local sources.

BANKERS

· National Commercial Bank

Al Balad Branch

King Abdulaziz Street

PO Box: 5066

Jeddah 21422

Tel: (966-2) 6434777

Fax: (966-2) 6441686

· Saudi American Bank

Andalous Street

PO Box: 490

Jeddah 21411

Tel: (966-2) 6533555

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

According to local sources, subject meets its payment obligations in a timely manner and the company is considered to be a fair trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.95
UK Pound	1	Rs.88.42
Euro	1	Rs.71.71

INFORMATION DETAILS

Report Prepared by :

MNL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.